David Cocagne explains why real estate developers are unique entrepreneurs, and what it takes to succeed in the field: persistence, an appetite for risk, and the creativity to align stakeholder interests. More →

Prize-linked savings accounts, which are now legal in the U.S., combine a traditional savings account with the excitement of playing the lottery, and are successful at encouraging people to save money. More →

With momentum building after the 2008 crisis to implement further regulations to financial markets, Torben G. Andersen thinks now is the time to push for a better understanding of the markets as they exist today. More →

The geographic clustering of retail stores in malls and shopping centers, known as “agglomeration,” can act as a channel for spreading the effects of negative economic shocks such as store closures and bankruptcies. If a large retailer such as Circuit City or Linens ’n Things goes out of business, other stores located near a closing chain’s location are at higher risk of closing as well, regardless of local economic conditions.
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Paola Sapienza, a professor of finance at the Kellogg School, looks at how gaps in economic development often fall along cultural lines. But does culture follow economic development or is economic development directed by culture? Sapienza studies the economic effects of family makeup, the effects of immigration on saving and spending patterns, and how trust and corruption factor into economic growth. More →

A new study of the impact of the unemployment insurance program reveals two largely unanticipated benefits: It has helped to reduce mortgage delinquencies and foreclosures, and it has expanded overall access to credit. More →

In the long run, foreign investors do better than their ethnic Chinese counterparts when it comes to investing in Chinese businesses. Why? Foreign investors tend to invest in intangibles, like brand reputation or human resources. More →

What if optimism about the housing market could spread from one confident person to another? New research suggests social transmission could offer an explanation for the boom–bust housing cycle. More →

For the first time, the “sinking ship” effect, in which floundering firms fail to attract necessary human capital, is empirically investigated. Jennifer Brown and David Matsa scour data from a large job-search website to find that, as a firm’s financial health decreases, so do the number and quality of its job applicants. More →

Economists have long observed the effects of financial contagion, but new research by Efraim Benmelech uses airline industry data to identify a “collateral channel” through which financial woes actually spread. More →

Musings on why operations can both infuriate and delight including thoughts on processes, ruminations on services, and ponderings on supply chains from Gad Allon and
Marty Lariviere and Jan Van Mieghem.

Consider the Insight blog your one-on-one session with the faculty of the Kellogg School of Management. Here we discuss current affairs, books, research and more. Pull up a chair; office hours are about to begin.